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Canadian Pacific reports record results

Canadian Pacific Railway Limited on 29 January announced its 2019 fourth-quarter results, including record revenues of US$2.07 billion, an operating ratio (“OR”‘) of 57.0 percent, improved diluted earnings per share (“EPS”) of US$4.82 and record adjusted diluted EPS of US$4.77.


  • Revenues increased 3 percent to US$2.07 billion, from US$2.01 billion in Q4 2018
  • OR increased by 50 basis points (bps) to 57.0 percent
  • Diluted EPS improved 26 percent to US$4.82, from US$3.83 in Q4 2018. Adjusted diluted EPS rose 5 percent to US$4.77, from US$4.55 in Q4 2018

“CP’s strong operational performance and commitment to controlling costs enabled the railway to be successful despite headwinds to our bulk franchise,” said Keith Creel, CP President and CEO. “We continue to take a disciplined approach to sustainable, profitable growth – a plan rooted in the foundations of precision scheduled railroading. This approach in 2019 enabled CP to once again deliver its highest-ever revenues and the lowest-ever yearly operating ratio.”


  • Revenues increased 7 percent to a record US$7.79 billion
  • Diluted EPS increased 29 percent to a record US$17.52 from US$13.61, while adjusted diluted EPS rose 13 percent to US$16.44, from US$14.51
  • OR improved to 59.9 percent, a 140 bps improvement year over year

“Global economic uncertainty caused by geopolitical and macroeconomic challenges slowed rail volumes across North America,” said Creel. “By leveraging our unique growth opportunities and applying our precision scheduled railroading operating model, CP led the industry in volume growth for the second year in a row and, once again, delivered on its guidance.”


  • High single-digit to low double-digit adjusted diluted EPS growth relative to 2019’s adjusted diluted EPS of US$16.44
  • Mid-single digit volume growth, as measured in revenue ton miles (RTMs)
  • Capital expenditures of US$1.6 billion

CP’s guidance is based on the following key assumptions:

  • Effective tax rate of 25 percent
  • Other components of net periodic benefit recovery will decrease by approximately US$40 million versus 2019

“Our industry-leading CP family remains focused on safely harnessing our network capacity to provide unique solutions that leverage our network strengths and our superior service,” said Creel. “As we head into 2020 and beyond, I’m confident we’ll continue to see wins in the marketplace enabling us to continue to outpace the economy and our peers.”

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